Most advisors recognize the value of referrals, but few seem to understand the psychology and the processes that promote referrals. Most often, both parties in a referral situation measure the success of the referral process by the outcome: If the prospect becomes a client, the referral was successful. Advisors need to understand that the most important part of a referral is the behavior. It’s the referring behavior – not the outcome of the referral – that you want to promote and reward. It’s more important to focus on the process than on the result to improve the quantity and quality of referrals you receive.
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